Image Credit: Getty Images The U.S. government shut down at 12:01 a.m. on October 1, 2025, after Congress failed to pass new funding to keep federal operations running. The impasse stems from deep political divisions between Republicans and Democrats, especially over healthcare funding. Democrats insist that any funding deal must include extensions of health insurance subsidies, while Republicans argue those negotiations should be handled separately. With both sides unwilling to compromise, federal agencies, employees, and millions of Americans are now facing the fallout.